Quote Originally Posted by BULBUS View Post
Hi, any accountants out there? I sold some of my signed memorabilia collection through an auction house and received a 1099-Misc. I'm pretty sure i took a loss on the items, but I do not have records of most of my purchases (which were several years ago). How do I go about filing this on my tax return?
You will probably want to seek the advice of a local accountant on this, but my understanding is that hobby income is offset by hobby expenses, so you could claim expenses generated in the past year (2014) against the income on the 1099-MISC. I'm sure this will be a far cry from your income generated, but without records of cost basis on the items you sold, the IRS assumes your basis to be zero. To be clear, hobby expenses would be just that: expenses derived from your hobby (displays, holders, desiccant, dehumidifiers, humidifiers, etc). It would not include money spent on other items, as those would have their own individual cost bases.

Again, talk to a local accountant, as the rules may be different for your state than other states, and the accountant will do a much better job in helping you define your expenses than anyone else could.